Health GAP (Global Access Project)
www.healthgap.org

For Immediate Release: June 24, 2005
For more information contact: Sharonann Lynch 646-645-5225, Asia Russell 267-475-2645

Brazil Closer to Breaking the Patent Monopoly on Costly HIV Medicine

On Friday evening in Brazil President Lula and Minister of Health Costa signed a decree effectively authorizing the government ending the patent monopoly on a drug used in the treatment of people living with HIV/AIDS. The decree, know as "compulsory licensing" is legal under the World Trade Organization and is seen as a cost-cutting mechanism used to protect public health. In this case the government has said the Institute of Drug Technology (Far-Manguinhos) can produce generic versions of Abbott's Lopinavir/Ritonavir (brand name Kaletra) for as much as 60% less.

On March 15 2005, Brazil announced its intent to issue compulsory licenses for four high-priced, patented AIDS medicines if drug companies did not negotiate voluntary licensing agreements. Currently 70% of the budget of the Aids National Programme's for ARVs is spent on the purchase of four patented drugs, Abbot's Lopinavir/Ritonavir, Gilead's Tenofovir, Merck's Efavirenz and Boeringer Ingleheim's Nelfinavir. Brazilian public and private companies are only producing 7 out of 16 drugs that are used in the tri-therapy while there is capacity to produce all of the needed medicines.

"The medicines are critical for HIV treatment when initial combinations of medicine have failed. The cost second generation patented HIV/AIDS drugs threatens the sustainability of treatment program not only in Brazil, but throughout the developing world," said Asia Russell. "Now other countries, particularly countries with the capacity to produce and export medicines to other countries must follow suit and break the patent monopolies of otherwise expensive AIDS drugs in order to ensure life-long treatment."

Legally, under the rules of the World Trade Organization Brazil can export non-predominant quantities of the drug to other countries. "Politically, it the past, Brazil has been reluctant to export out of fear of an even bigger political attack by the U.S. Hopefully, this signals that Brazil has now crossed the bridge, that it will issue similar licenses for additional second generation AIDS drugs and that it will produce for export," said Brook Baker of Health GAP.

Brazil's National STD/AIDS program has been internationally lauded for its program of universal HIV treatment access and bold prevention campaigns. Last month Brazil rejected $40 million in AIDS funding from the United States that was conditioned on Brazil agreeing to condemn prostitution.

"The success of the Brazilian AIDS treatment program has been made possible by the local production of generic medicines. This policy has brought down the price of raw materials for antiretroviral medications internationally. The Health Ministry must stand up to pressure from the pharmaceutical companies and the U.S. government--not only for the Brazilian people, but for people living with AIDS around the world," said Sean Barry of Health GAP.

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